H1 2015 | The Deloitte M&A Index

The Deloitte M&A Index H1 2015 The deal momentum continues into 2015 Key points Contacts • In our previous reports we highlighted that globally corporates are in a strong position to Iain Macmillan pursue M&A. They have rebuilt their balance sheets, accumulated record levels of cash and Head of UK M&A stock market rallies have boosted their valuations. and New Growth +44 (0) 20 7007 2975 • Our projections of the M&A volumes show that the momentum that started last year is [email protected] continuing in 2015. Despite the expected dip from Q4 to Q1, the Deloitte M&A Index forecasts deal volumes for H1 2015 are likely to be 8% higher than for the same period in Sriram Prakash 2014. So far this year $583 billion worth of deals have been announced, surpassing the Head of M&A $563 billion announced in Q1 last year. and New Growth Insight +44 (0) 20 7303 3155 • M&A volumes are being influenced by factors such as the decline in oil prices, appreciation [email protected] of the dollar, the rise of China as a global player in M&A and pressure from investors to focus on top-line growth. The diverging growth trajectories between the US and other economies are opening ‘deal corridors’ for US corporates to acquire attractively priced assets abroad. We estimate nearly one in four dollars spent on deals in Europe last year was either from the US or Asian countries such as China. • In addition to the UK, six other European nations are planning to hold elections in 2015. The build up to US elections next year will also start in the coming months. These events could have a temporary impact on the pick-up in deal momentum. Figure 1. The Deloitte M&A Index Q2 2015 Global M&A deal volumes M&A deal 9,500 forecast High: 8,900 9,000 Mid: 8,600 8,500 Low: 8,300 8,000 7,500 7,000 Last twelve months deal volumes 33,500 33,400 33,300 33,200 33,100 33,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 Deloitte M&A Index M&A deal volumes Last twelve months deal volumes (projections) (actuals) Sources: Deloitte analysis based on data from Thomson One Banker